Tokenized Gold Market Surges to Record $1.4B as Stablecoin Sector Expands
Tokenized gold has reached an all-time high market capitalization of $1.4 billion in March, riding the wave of gold’s rally past $3,000 per ounce, according to CoinDesk Data’s latest stablecoin report.
Tether’s XAUT and Paxos’ PAXG continue to lead the sector, holding market caps of $749 million and $653 million, respectively. Trading volumes for gold-backed tokens exceeded $1.6 billion for the month, marking the highest activity level in over a year.
The broader stablecoin market also experienced sustained growth, expanding for the 18th consecutive month and surpassing a $231 billion market cap.
Tether’s USDT remains the largest stablecoin, hitting a record supply of $144 billion. However, its market dominance declined to 62.1%, its lowest level since March 2023, as competitors like Circle’s USDC saw increased adoption. USDC’s market cap rose by 7% to approach $60 billion.
Meanwhile, Ethena’s newly launched USDtb stablecoin, backed by BlackRock’s tokenized money market fund BUIDL, has quickly amassed over $1 billion in assets, making it the eighth-largest stablecoin by market cap.
In centralized exchange trading, USDT retained its dominance with a 75.7% share among the top 10 stablecoins, although its hold slightly weakened. USDC and First Digital’s FDUSD gained ground, increasing their market share to 13.6% and 10%, respectively.
Regulatory shifts in Europe have significantly impacted euro-denominated stablecoins. Exchanges including Kraken, Coinbase, and Crypto.com have removed non-compliant stablecoins to align with the Markets in Crypto-Assets (MiCA) framework.
Benefiting from the new regulatory landscape, Circle’s EURC stablecoin saw a sharp rise, increasing nearly 30% in market cap to $157 million and capturing 45% of the euro stablecoin market.
